The performance appraisal process is a crucial part of the management of human resources in any organization. In fact, without a means of assessing employee performance, management would not be in a position to decide who the top performers are and how they differ from the less productive ones. Unless they are equipped with their crucial information, they would not be able to determine adequate compensation and reward structures leading to a lack of moraleaswellas overall dissatisfaction in the workforce that may well culminate in a high turnover rate.
Understanding that employee turnover is extremely expensive it is typically better to create and utilize a performance improvement plan that will improve performance and productivity rather than terminating someone and starting over.
A major mistake many supervisors make is that they want to complicate a process rather than find solutions.
In the case of a performance improvement plan, we should break it down to some very simple factors; define the problem, define a solution, define a must improve by date, measure the progress, determine if the problem is solved or requires additional attention.